A life insurance policy is an understanding between an insurance agency and a policyholder that offers monetary inclusion under which the insurance agency guarantees to pay a specific add up to the assigned recipient in the unfortunate event of the insured person’s demise during the term of life insurance plans.

In return, the policyholder consents to pay a predefined amount of money as a premium either on a regular basis or as a single premium life insurance. If covered by the policy, coverage will be provided for critical illness as well.